EURAUD, 60 min
US Employment for April is out later and should reveal a 210k (median 208k) headline for the month following larger increases of 215k in March and 245k in February. Initial claims improved dramatically during April which could help lift the headline but consumer confidence measures and ADP were subdued.
Two days ago while EURUSD was still trading at 1.1490 I wrote that “the 1.1532 to 1.1570 should be a challenge for the bulls and this Sell Area has potential to turn the pair down again. We will follow the price action to see if market supplies us with sell signals. Should this happen my target one is at 1.1480 and target two at 1.1410.”
The pair rallied almost to my sell area but turned lower 4 pips below it. Market then moved down to hit both of the targets and is now reacting higher from a support created by the April 20th and 21st highs.
After moving considerably lower in last three days it seems that EURUSD is now likely to retrace some of the move which might provide us with entries on the short side after a rally. In the event that the rally I’m anticipating takes price all the way up to my sell aera I will be looking for sell signals between 1.1453 and 1.1474 with T1 at 1.1409 – 1.1425 bracket and T2 at 1.1360 – 1.1377 range.
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Chief Market Analyst
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